PwC Location Intelligence solution provides granular insights by combining your internal portfolio performance data with our rich data repository including footfall, demographics and market dynamics.
We conduct in-depth analysis on asset performance, to help you make data-driven decisions and manage uncertainty in these turbulent times.
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Our client was looking to expand by acquiring fuel stations in a new market and wanted to conduct assessment of the target stations operations.
Through our location intelligence solution, we identified external factors that were affecting the profitability of the target stations. It also provided our client visibility into detailed catchment area dynamics such as competition presence, non-fuel retail offerings, potential footfalls and population.
Our client was able to identify gas stations that were heavily impacted by competition from well-known brands with better non-fuel offerings. Our station level in-depth analysis helped them assess the performance and expected potential to allow our client to negotiate better value when acquiring the target stations.
Our client was looking to invest in the international expansion of one of the largest food retailers in the Middle East and wanted to review the robustness of the business plan given the prospective store openings and their locations.
Leveraging our location intelligence tool, we mapped the food retail supply and demand drivers for key cities and assessed the prospective new store locations in terms of population density, presence of competitors, affluence and food retail spend and availability of total modern retail space.
To validate the efficacy of the business plan, we estimated the effective spend per sqm for each prospective store and compared it to the expected revenue per sqm. This helped our client to gauge which proposed sites are likely to fall short of revenue expectations given existing gaps in supply and demand and highlighted new stores that would have potential cannibalisation in future.
We also identified other areas where further expansion could take place by examining white spaces based on the mismatch of food retail supply and demand in all major cities across the country.
Nicolas Boukhalil
Partner, Middle East Energy, Utilities and Resources, PwC Middle East
Tel: +971 52 745 1682